'We Have A Deal': European Union Clears €90 Billion Zero-Interest Support Package For Ukraine

Last Updated:December 19, 2025, 11:28 IST

EU has approved a €90 billion zero-interest support package for Ukraine for 2026-27 after negotiations on ways to finance Ukraine’s military and economic needs.

Soldiers ride a quad bike near Kostyantynivka, Donetsk region, Ukraine (Photo: AP)

European Union leaders have approved a €90 billion ($106 billion) support package for Ukraine for 2026-27, EU Council President Antonio Costa announced on Friday, as the war with Russia drags into its fourth year.

“We have a deal. Decision to provide 90 billion euros of support to Ukraine for 2026–27 approved. We committed, we delivered," Costa posted on X.

The agreement was reached after intensive overnight negotiations in Brussels, where leaders debated how to finance Ukraine’s mounting military and economic needs.

The support will take the form of a zero-interest loan funded through borrowing on capital markets, after the EU failed to reach a consensus on using frozen Russian assets to raise the money, the Associated Press reported.

According to the Monetary Fund, Ukraine will need an estimated €137 billion ($161 billion) in 2026 and 2027 to sustain its economy and war effort.

Kyiv is facing an acute cash crunch and has warned it could run out of funds by spring without fresh international assistance.

Initially, EU leaders had explored a plan to use some of the €210 billion ($246 billion) worth of Russian assets frozen in Europe, most of them held in Belgium, as collateral for a so-called “reparations loan."

However, the proposal ran into strong resistance from Belgium, which raised legal and financial concerns.

Belgian Prime Minister Bart De Wever rejected the plan as legally risky, warning it could expose Euroclear, the Brussels-based financial clearing house holding €193 billion ($226 billion) of the frozen assets, to retaliation and lawsuits.

Russia’s central bank last week filed a legal case against Euroclear aimed at blocking any use of the frozen funds to support Ukraine.

As talks stalled, leaders eventually agreed to finance the package through borrowing on capital markets.

French President Emmanuel Macron described the approach as “the most realistic and practical way" to fund Ukraine.

German Chancellor Friedrich Merz also welcomed the decision, saying, “The financial package for Ukraine has been finalised," and confirming that “Ukraine is granted a zero-interest loan."

The package faced opposition from Hungary, Slovakia and the Czech Republic, all of which have been critical of continued EU support for Ukraine.

Hungarian Prime Minister Viktor Orban said, “I would not like a European Union in war. To give money means war," and dismissed the plan to use frozen Russian assets as a “dead end."

Despite their objections, the three countries agreed not to block the deal after receiving assurances they would be shielded from any financial fallout.

Zelenskyy attended the Brussels summit and urged leaders to reach a swift decision to keep Ukraine afloat.

Polish Prime Minister Donald Tusk underscored the stakes, warning it was a choice between sending “either money today or blood tomorrow."

News world 'We Have A Deal': European Union Clears €90 Billion Zero-Interest Support Package For Ukraine

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